California sales tax
San Jose Faces 10% Total Sales Tax Under County Hospital Rescue Plan after Trump cuts
Post-tax tipping?
Faz in North San Jose with a 13.37% tax
My company is based in Los Angeles and just started selling goods through Shopify. Shopify has an auto sales tax system which is really nice, however, I am a bit confused about how it charges sales tax for our orders that are being delivered and charged to customers within the state of CA.
For instance, we had an order that was fulfilled to another city within California (LA county). The customer was charged State Tax and LA County Tax. All good here. The next day, an order came in from San Jose, CA and Shopify only charged the customer State tax. According to Shopify's tax system, in addition to state tax, the zip code within San Jose we fulfilled also has a county and municipal tax. Shouldn't Shopify charge the customer all three tax rates instead of just state tax?
I was confused about this so I contacted Shopify and they said: "So the way you are seeing Taxes for San Jose is basically the taxes that could be charged, however in this case only the state is the same, as the order is in a different county and city. That means only sales tax is charged. This is why we only see the charge for 7.25%."
Is this correct?